Hotels in London bounced back in September 2013 after two consecutive months of negative year-on-year comparisons with a 6.4% increase in total revenues per available room (TrevPAR) and an 8.2% growth in Gross Operating Profit per available room (GOPPAR), according to the latest HotStats survey of 624 full-service hotels across the UK.
The growth is mainly rate driven with hoteliers pushing the average room rate (ARR) up by 8.9% to £158.17 compared with £145.22 in September 2012 and representing a positive gap of £15.78 in the rolling 12-months average. This surge only resulted in a slight occupancy decrease of 0.6 percentage points to 88.0% leading to a RevPAR increase of 8.2% for the month of September to £139.15.
Besides the rooms department contribution, additional revenue per available room derived from food (+3.7%) at £23.49 and meeting room hire (+1.0%) at £8.49 helped to deliver a 6.4 increase in TrevPAR at £188.87 against £177.49 in the same month last year.
Departmental profit conversion per available room (DOPPAR) improved by 7.7% to 69.2% of total revenue thanks to cost control and, combined with a 1.5 percentage points reduction in payroll, GOPPAR in September 2013 surged by 8.2% to £96.54.
When looking at the third quarter performance, occupancy is the only key performance indicator showing a positive movement with a 3 percentage points increase to 87.1% compared to 84.1% in Q3 in 2012. Assessing the RevPAR, TrevPAR and GOPPAR perspective, results showed a decrease by 4.9%, 8.0% and 11.5% respectively compared to the same period last year largely due to the Olympics effect.
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